The Nordstrom Way: The K-Selected Model of Doing Business

“I come from the land of Nordstrom customer service,” blogger and author Kimmelin Hull tells us. “There were stories about people bringing in pairs of shoes that were years old, in poor shape, and definitely not from Nordstrom. They approached the sales desk and demanded a refund for the shoes they no longer cared for. They got what they asked for.” Nordstrom refunds items at any time purchased from any Nordstrom store. And sometimes even from another store!

Everyone has his or her own story to share, but I like this one: it took place at the Anchorage store soon after Nordstrom’s 1975 purchase from the Northern Commercial Company. A customer, unaware that the store had changed hands, returned a set of tires. Nordstrom accepted the tires. Nordstrom doesn’t sell tires.

John Nordstrom emigrated to the United States in 1887, hoping to found a department store. He co-founded the shoe store Wallin & Nordstrom in 1901 in Seattle. Over the years, Nordstrom swelled from one downtown Seattle shoe store into a nationwide fashion department store renowned for its customer service, generous size ranges and wide selection of fine apparel and accessories—oh, and shoes. “Known for its wide aisles…tasteful fixturing, seating for shoppers and live piano players, Nordstrom epitomizes specialty retail department store shopping,” says Wikipedia.

The Nordstrom model of customer service is based on building a long-term relationship with returning customers; rather than the one-shot sale. It is very similar to the reciprocal altruism I talk about in a previous post that explores "the Prisoner's Dilemma". An incredible example of this practice is the story Spector tells of a customer who loved a certain model of slacks that was on sale at Nordstrom. The salesperson was unable to find her size there or at any other Nordstrom in town. Aware that the same slacks were available at a competitor, the associate secured some petty cash from her department manager, nipped over to the competing store, bought the pair (at full price) then sold it to the customer at the Nordstrom sale price. Obviously, Nordstrom didn’t make money on that particular sale, but this was considered an investment in promoting the loyalty of the customer. No doubt, she would think of Nordstrom for her next purchase.

Nordstrom’s 75-word Employee Handbook was contained on a small gray card, that read: “…Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them.” Their only rule was Rule #1: Use good judgment in all situations. There will be no additional rules.

Nordstrom developed 8 management principles to achieving its #1 status for customer service in America, which are discussed in Robert Spector’s book, The Nordstrom Way (2005) :

• Provide your customer with choices
• Create an inviting place for your customers
• Hire nice, motivated people
• Sell the relationship
• Empower employees to take ownership
• Dump the rules (tear down barriers to customer service)
• Encourage internal competition
• Commit 100% to customer service

Nordstrom’s model depends on long-term investments. These terms also exist in the science of ecology. Back in the 1970s, ecologists Robert MacArthur & E.O. Wilson coined two diametrically opposing strategies adopted by species in Nature in relation to the carrying capacity of their environment. These opposing strategies were described by Eric Pianka as either a K-selected or r-selected strategy. The r-selected (opportunist) species tend to exploit less-crowded ecological niches, and produce many offspring, each of which has a relatively low probability of surviving to adulthood. In contrast, K-selected (equilibrium) species are strong competitors in crowded niches, and invest more heavily in fewer offspring, each of which has a relatively high probability of surviving to adulthood. It goes without saying that r-selected species dominate unstable, unpredictable, changing and harsh environments, investing in the numbers game vs. the stability of the environment. Characteristic traits of r-strategists include high reproductive rate and numbers (fecundity), small size, early maturity and short-lives and can disperse offspring widely (e.g., most weeds, mice and viruses). K-strategists, on the other hand dominate in stable environments, where investment and successful competition—or creative cooperation and niche partitioning—can serve the organism because the environment won’t change and investment in it is logical. K-strategists are typically larger, have longer life expectancies and produce fewer offspring that require parental care. Examples include most mammals (like us), trees, whales and elephants. It goes without saying that K-selected organisms tend to succeed r-selected organisms, which are often the first colonizers of unstable environments that help to increase biodiversity and stabilize the environment.

Social and economic paradigm examples that follow this ecological model include the French Revolution and Schumpeter’s economic theory of “creative destruction” in corporate succession. Creative destruction was first introduced as a term in 1942 by the economist, Joseph Schumpeter. He used it to describe the process of industrial transformation that accompanies radical innovation. According to Schumpeter’s view of capitalism, innovative entry by entrepreneurs sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power. Xerox, for example, saw its profits fall and its dominance vanish as rivals launched improved designs or cut manufacturing costs, drawing customers away. This is how ecologists describe the seral stages of colonization: initial monopolization of pioneer opportunists that give way to increased diversity and niche partitioning of resources. Creative destruction is a matter of scale.

Economics and Ecology are very similar, with terms being applicable interchangeably like niche, productivity and carrying capacity, equilibrium, succession, competition, co-evolution, and so forth...even in terms of theory vs. reality. John W. Dimmick’s book, “Media Competition and Coexistence: the theory of the niche” examines these relationships.

Nordstrom’s exemplary customer relations provides a successful and inspirational example of business leadership. Spector tells the following story of a customer shopping at the Emporium, a competitor to Nordstrom, in San Francisco: “A customer has just purchased a dress shirt … and begins to walk out …the salesman calls, “Wait! Stop!” The shocked customer freezes in his tracks. The Emporium salesman…grabs the shopping bag, fishes the receipt out …scribbles the words “Thank you” on the receipt and hands all back to the customer and says with a sigh, “Ever since Nordstrom came to San Francisco, we have to do this.” What is good competition if not exemplary leadership in a culture that must successfully co-exist?

In response to the question, “are Nordstrom employees exceptional or are they simply in an atmosphere where they are expected to be exceptional so they are?” Marti Wikstrom, a Nordstrom executive responded, “At Nordstrom, they work at an exceptional level because they are supported by the culture.” Nordstrom also gives the people on the sales floor the freedom to make decisions—and management supports them in those decisions. Individual creativity, says Spector, is a by-product of freedom and sales people are judged on their performance, not their obedience to others.

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What is NaNoWriMo and Why Should I Care?

NaNoWriMo stands for National Novel Writing Month. Professional and amateur writers from all over the world come together every November to write a designated amount over a 30 day period. “National Novel Writing Month is a fun, seat-of-your-pants approach to novel writing. Participants begin writing November 1. The goal is to write a 175-page (50,000-word) novel by midnight, November 30.” Anything over 40,000 words is a novel according to the Science Fiction and Fantasy Writers of America. “Valuing enthusiasm and perseverance over painstaking craft, NaNoWriMo is a novel-writing program for everyone who has thought fleetingly about writing a novel but has been scared away by the time and effort involved,” says the site.

Why do it? If you’re a writer—well, if you’re human—then you know about procrastination. NaNoWriMo is all about the magical power of deadlines, to help writers achieve their goal of completing a work. Their rationale for participating in this whirlwind month-long marathon is sound:

1. If you don’t do it now, you probably never will. They suggest that most of us, if left to our own devices, would never make the time to write a novel. I agree. Time and again, when I tell people that I am an author, they respond with “I’d love to write a book once I have time.” Well, you never will with that mindset.
2. Aiming low is the best way to succeed. I totally agree. Professional writers all agree that getting that first draft out is crucial. That’s what revision of subsequent drafts is for. No novel emerges at its first iteration as a perfect work of art. Every published book is the end result of revision, edits, polish. But that can’t happen until you have a “finished” product with a beginning, middle and end.
3. Art for art’s sake does wonderful things to you. It makes you laugh, cry, feel, and see. It gives you license to live and express life to the fullest. “Writing a novel in a month is both exhilarating and stupid.” Stupid is good; it’s humbling and reminds us that we are all human.

As we enter week two, the site is registering some interesting snags and victories with a collective word count of 749,689,061 words. It’s not too late to enter; in fact I am thinking of entering to give me the motivation to finish my novel. Here’s the deal (hmmm, you’ve heard that phrase before, eh? But don’t worry, be happy; this is good). You have to be over 13 years old to participate. Here are the ten steps to enter and participate:
1) Sign up for the event by clicking the "Sign Up Now" link at the top of the site. It's right there above "National."
2) Check your email and read the ginormous email our noveling robots send you. It will have "Love" in the subject line, and may be hiding in your Junk folder.
3) Log into your account and use the links on the My NaNoWriMo page to set your timezone, affiliate with a region, and tell us a little bit about yourself.
4) Begin procrastinating by reading through all the great advice and funny stories in the forums. Post some stories and questions of your own. Get excited. Get nervous. Try to rope someone else into doing this with you. Eat lots of chocolate and stockpile noveling rewards.
5) On November 1, begin writing your novel. Your goal is to write a 50,000-word novel by midnight, local time, on November 30th. You write on your own computer, using whatever software you prefer.
6) This is not as scary as it sounds.
7) Starting November 1, you can update your word count in that box at the top of the site, and post excerpts of your work for others to read. Watch your word-count accumulate and story take shape. Feel a little giddy.
8) Write with other NaNoWriMo participants in your area. Write by yourself. Write. Write. Write.
9) If you write 50,000 words of fiction by midnight, local time, November 30th, you can upload your novel for official verification, and be added to our hallowed Winner’s Page and receive a handsome winner’s certificate and web badge. We'll post step-by-step instructions on how to scramble and upload your novel starting in mid-November.
10) Win or lose, you rock for even trying.
After uploading your novel (you can scramble the words to protect your work; they won’t affect the word count), NaNoWriMo verifies your word count and automatically deletes the script. According to them several people have gone on to successfully publish their novel once finished. The site provides an impressive list of NaNoWriMo manuscripts that were published. Finishing your novel through NaNoWriMo doesn’t guarantee you anything except a venue to help motivate you to finish your novel, something many writers need.

If you check out the site, you’ll find some interesting statistics, advice on writing, writing challenges and some funny stories. Apparently, week two is a particularly hard time for writers who have committed themselves to this month-long marathon.

For those of you who have already entered and are entering week two, here’s what Chris says about week two: “In previous years, Week Two has been blamed for everything from incidents of spontaneous limb-sloughing to global potato famines. We're afraid we've contributed to Week Two's poor brand image by yammering on and on about the challenges of this phase of the noveling adventure. We've said that getting over the Week Two Hump is the hardest and most important thing you'll do in November, and that if you can power out of Week Two's orbit with your word count intact then you're practically guaranteed a victory. Because Week Two can be so spirit-testing.”

“In 2008,” says the site, “we had over 120,000 participants. More than 20,000 of them crossed the 50k finish line by the midnight deadline, entering into the annals of NaNoWriMo superstardom forever. They started the month as auto mechanics, out-of-work actors, and middle school English teachers. They walked away novelists.”

Okay… well, here goes…

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The Somerset Collection: Toulouse Gets Lost in Detroit

“Toulouse lost? EEK!” you say. What happened? Some of you might also recall that this isn't the first time I "lost" Toulouse. There was the other liquor store incident in Louisville, Kentucky... Well, as some of you know I am on the road again, marketing my fiction writing guide The Fiction Writer: Get Published, Write Now! to schools, colleges and universities (know of one that could use my book?) across North America. My travels took me through several universities like Guelph University, York University, University of Toronto, University of Chicago, Purdue University, Notre Dame and the University of Wisconsin, to name a few. Then Toulouse and I drove to Detroit for a high-brow marketing meeting that my publisher set up for us.

We parked ourselves in Utica, a nice suburb in the northern part of Detroit where we checked out the local restaurants and malls, one of which was the upscale “Somerset Collection” in Troy, an adjacent suburb of Metro Detroit. Developed, managed and co-owned by The Forbes Company, the center is anchored by department stores Nordstrom, Macy's, Neiman Marcus, and Saks Fifth Avenue and contains two centers, Somerset North and Somerset South, joined by a bridge.

The mall started out in 1967 as a Saks Fifth Avenue. In 1969 Louis G. Redstone Associates designed the upscale “Somerset Mall” around the existing Saks. Then in 1991-1992 the center was renamed Somerset Collection, a second level was added, and Neiman Marcus opened a store. In 1992, Tiffany's was added. Co-owners Forbes/Cohen Properties and Frankel Associates expanded the mall across Big Beaver Road in 1996 using the Michigan based JPRA Architects and called Somerset North. Michigan's first Nordstrom and a Hudson's (now Macy's) anchored the new three-story expansion. A 700-foot enclosed bridge with a moving sidewalk called a "Skywalk" joins the two malls over Big Beaver Road. The vast grand court with its full arched glass dome roof, designed by the Michigan based JPRA Architects, is one of the center’s unique architectural features.

Happy with our meeting, Toulouse and I wandered through the south mall, looking for a nice restaurant to celebrate and Toulouse spotted Brio, a Tuscan grille. The place was packed but Toulouse charmed the Maitre d’ and we got a nice table in the back. We started with a house-made flatbread, spiced elegantly with rosemary, parmesan and flax seeds, and a lobster bisque with shrimp and a touch of sherry. Oolala… Toulouse really liked it! The scamp has great taste. I then ordered from the grille, Artichoke Crusted Beef Medallion: beef tornadoes with an artichoke crust and mushroom marsala sauce, served with crispy potatoes and roasted vegetables. Toulouse insisted on ordering his own meal so I relented (I could always take back a doggy—er—catty bag). He ordered a Bistecca: Tournedos Di Manzo: filets served with romano crusted tomatoes, asparagus and Hollandaise. He even let me try some. It was fabulous!

We then sauntered through the mall, which was closing. After I oogled a gorgeous jacket at Ralph Lauren (that would look superb on me!), I left the mall toward the car parked outside to find a liquor store to celebrate some more. That’s when I realized that Toulouse wasn’t with me. I’d last seen him frolicking at the fountains inside the mall. I rushed back but the mall was shut. Would he get sucked down the drain before I had a chance to find him?

Luckily for me, I spotted several of Detroit’s finest in the coffee and donut shop next door and sashayed over to them…. I grinned like a fool and proceeded to tell them that I wasn’t from Detroit…in fact, I wasn’t from Michigan…in fact, I wasn’t from the United States. This really got their attention. “So, where are you from, then?” Officer Plante asked me with an amused crooked smile. When I told him that I was from Canada, he grinned and teased, “That’s a state, isn’t it?”

Randy Plante turned out to be a real fan of science fiction so I said I’d give him my book, “Darwin’s Paradox” if they could help me find Toulouse, my trusted—though unruly—companion--and the liquor store! They got really serious then and found a way inside the mall. Officer Kurt Sharrow (a writer himself—see “After I Graduate”) even brought out Bear, their K-9, who sniffed a ruffled Toulouse out from under a bench by the fountains. Toulouse did not appreciate Bear’s friendly lick.

My new friends then escorted us to the liquor store where Toulouse (ever the connoiseur of good spirits) picked out a delightful Pinot Noir to celebrate our successful adventure.

Detroit was never the same; neither was Toulouse...

Photos:

1. Officer Randy Plante, Utica Police Department

2. The Somerset Collection, Somerset South Front Lobby

3. The Somerset Collection, Somerset South

4. The Somerset Collection, outside Brio

5. Toulouse by the Fountains

6. Officer Kurt W. Sharrow, Utica Police Department

7. Officers of the Utica Police Department

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You’re Less Likely to Get Sick If You Actively Socialize

Isn’t that an oxymoron? More sociable people are more exposed to germs, after all. Yet a study by Sheldon Cohen and his colleagues published in Psychological Science (2003) showed that less sociable people caught colds more often than those who socialized. While that doesn’t follow the straight logic of exposure, it sheds light on the concept of mind-body dualism and the link between physical and mental health. People who socialize have a social identity, possibly multiple social identities, which seems to make them more resilient.

“Belonging to social groups and networks appears to be an important predictor of health—just as important as diet and exercise,” says a September/October 2009 article in Scientific American Mind by Jetten et.al. Socializing makes us healthier and more resilient. A 2005 study by Bernadette Boden-Albala at Columbia University found that socially isolated patients were twice as likely to have another stroke within five years as were those with meaningful social relationships. In fact, being cut off from others put people at far greater risk of another stroke than traditional factors like having coronary artery disease or being physically inactive, said the report.

Karen Ertel and colleagues at the Harvard School of Public Health, who tracked a large group of elderly Americans over six years, found “significantly less memory loss in those who were more socially integrated and active.” (American Journal of Public Health).

Does virtual socializing (e.g., social networking through Facebook, MySpace, blogging and chat-lines) contribute to better health like the examples above? That’s what researchers are still asking and some speculate that social networking provides a good socializing venue, particularly for those of us who are less mobile or otherwise more isolated from loved ones and close friends (through travel, for instance). But, researchers also suggest that this venue does not provide a totally satisfying substitute for face-to-face real-world engagement. It comes down to a healthy balance based on circumstance. Now more than ever, we have options for meeting new people, joining groups of like-minds (whether virtual or real) where we can safely be challenged and excited by life, associations that provide us with fulfilling activities and good mental health. I am an active blogger and online communicator (I travel a lot and find online chatting a wonderful way to keep in touch with family, friends and colleagues). I have also formed many associations through this venue, several of whom I have since met face-to-face and forged close friendships with.

That is, in the final analysis, the point: good mental health. You create your reality. Now, go socialize!


Photos:
Photo 1: I think this was some kind of cat-tormenting gang of the suburbs...
Photo 2: socializing at Times Square in New York City
Photo 3: The Witches of SF Canada

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Three Mistakes Not to Make When Crossing the Border

I wasn’t long back from my month-long sojourn out of province and country when I had to cross the border yet again into the United States on a mailing errand. I thought nothing of it, as I grabbed my passport and the package I was taking across the border to send to a bookstore in the United States because I was strapped for time and I knew it would take a bazillion days to get across the border via the traditional carriers. Well, I should have known better. My Karmic relationship with borders verges on dangerous at best. That day, I foolishly wore my new tie-dye t-shirt, donned my pilot sunglasses and had the New Age music blaring loud as I neared the border crossing. What was I thinking? I went on to make three fatal errors, which I pass onto you for your vicarious learning experience—at my expense, of course… LOL! Go ahead and laugh… I did… after…

Mistake #1—Attire and sense of humor: Was it the tie-dye shirt, my shades (which I stupidly didn’t take off right away) or my goofy smile…the customs officer started joking with me. That should have been the first alarm: customs officers don’t have a sense of humor, do they? So, when I told him I was just hopping over to mail a parcel of books to the States because it was cheaper and faster from there, he decided to get curious and wanted me to open the parcel I’d so meticulously put together and sealed. “To make sure it isn’t a bomb or has LSD or cocaine in it,” he teased—or so I surmised from his smirk and laughed. More mistake. I must have looked like some hippy-dippy mama drug dealer…

Mistake #2—Honesty and naïve attitude: I openly showed my disappointment at ruining the parcel I’d taped up so nicely. As I struggled to find something that would open the parcel without ruining the wrapping, I foolishly asked him if he could tape it shut again. He got downright surly and said he didn’t have to do that or anything. He then informed me tersely that I was using very suspicious language. Instantly realizing my error, I decided to adopt a guarded serious tone. As if to counter it, he produced what he called “a dangerous weapon”, which turned out to be a very tiny Swiss army knife to help me open the parcel with less damage. I felt like I’d entered the Twilight Zone as I used the inch-long blade to slice open the tape and showed him the books. After a cursory perusal, he decided that he was suddenly interested in the trunk. I was in for the whole meal deal, I guess…

So, I showed him the messy trunk, including a box full of books, which for some reason he wasn’t interested in. Holding onto my passport, he then told me to pull over and go inside. I felt a little helpless and conjured an old memory of the Cairo Airport when all our passports had been confiscated for over an hour under the guard of strange surly men with Uzis.

Mistake #3—Entertaining and cocky spirit… oh, and BIG mouth: The three large men in flack jackets looked up as I sauntered inside and surrendered my opened package of books to one of them. He pulled out a book and frowned at it then asked me what all that “Alien” stuff was about. I laughed and told him that I was “The Alien Next Door”. What WAS I thinking? (You’re doing the Facepalm thing, right?) That’s when they all got interested in me. Never be “interesting” when you’re alone in a room with four bored customs officials. One of the other men glanced knowingly at my tie-dye shirt, and casually "informed me" that he’d read that the province of British Columbia had the highest per capita sightings of UFOs. Then there ensued a four-way conversation about Canadians and UFO sightings—at my expense, of course. All kinds of theories were argued back and forth, which included Vancouver’s position as a drug-port, British Columbia’s slightly leftist politics and its history of being a haven for American draft dodgers. I tried very hard not to glance down at my tie-dye shirt and knew my windblown hair wasn’t doing me a favor right then.

Then, as if suddenly some light of justice had switched on, the officer put my books back carefully into the parcel, taped it all up with neon green U.S. Customs tape and cheerfully sent me on my way. And, yes, I got my passport back too. I wandered off in a daze as if I’d just left the set of a surreal movie.

The day after, a friend of mine passed me a CBC News article stating that Canadian border guards were pulling out their guns, batons and pepper spray more frequently. The article was based on a June report by the Canada Border Services and obtained by the Canadian Press under access to information legislation. The article reported that guards were pulling side arms from their holsters about three times a month. Pepper spray was used on aggressive travelers four times, but with no serious injuries. According to the report, the Canadian government made its decision to arm the guards for security reasons and to reflect their U.S. counterparts to help deal with cross-border criminal activity.

“Oboy!” I say…

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